Rational investing for financial independence
Some months ago I wrote an article about the historical performance of so-called “sin-stocks”. Tobacco companies have performed the best in the US, and alcohol stocks in the UK. In this article I briefly argue for the reasons why and why they most likely continue to outperform. High margins and cashflows: Margins are very high. For example, 27% of the
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I’m wealthy enough where I don’t need to own a tobacco company & deal with the consequences of public ownership. -Warren Buffett. ESG investing is on the rise as unethical stocks come with a lot of baggage for publicly followed investors. If you’re a closely followed investor, which obviously Warren Buffett is, you are guaranteed to get asked a lot
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Before you continue reading I want to emphasize that the portfolio below is no recommendation to buy or sell the mentioned securities. I’m no investment advisor. Please do your own due diligence. Below you find a portfolio of 10 stocks that can be labelled as “unethical”. These “sin”-stocks produce goods and services that are legal, but still many institutions are
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Philip Morris International (from now on PMI) is probably one of the most “hated” companies on the planet. This black sheep is literally black-listed by all institutions bar a few brave vice funds, which means PMI and other tobacco stocks have a huge base of retail shareholders, just like myself. PMI is a sin stock, a topic I wrote about
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A certain group of stocks have outperformed the rest of the stock market by a wide margin: Sin stocks. Tobacco, alcohol, arms producers, the gambling industry, the cannabis industry and sex-industry can safely be labelled as sin stocks. In the US, tobacco stocks have been the best performers over the last century, while alcohol stocks have been the best performer
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